Reuters: Hot Stocks: STOCKS NEWS THAILAND-Citi downgrades Bangkok Bank to neutral

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STOCKS NEWS THAILAND-Citi downgrades Bangkok Bank to neutral Apr 26th 2012, 03:31 Wed Apr 25, 2012 11:31pm EDT Citigroup cut its rating on Bangkok Bank Pcl to neutral from buy, reflecting a softer net interest margin (NIM) outlook in the first half of 2012 that would cap future earnings of the country's biggest bank. The brokerage set the stock's target price at 200 baht ($6.46). Bangkok Bank shares, which have gained 21 percent this year, were up 0.54 percent at 185 baht on Thursday. "Bangkok Bank posted results that were in line, but we see negative NIM movement as limiting earnings upside from strong loan volume," Citigroup said in a report. "Bangkok Bank granted some flood aid to clients that would cap NIM in the first half of 2012 estimate at the first quarter 2012 level before recovery by the second half of 2012 estimate," it said. Overall, Thai banks reported strong first quarter 2012 profit, with core profit up 26 percent from a year earlier, it said. It recommended that investors stick with stocks with superior earnings growth rather than cheaper valuations with no catalyst. Kasikornbank Pcl, Siam Commercial Bank Pcl and Bank of Ayudhya Pcl were among its top picks.

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